It Snowed In Mexico? Mexican Central Bank Unexpectedly Cuts Rate Due To "Worse Than Expected Economy"

Tyler Durden's picture

While we are led to understand that the US economy contracting at a pace not seen in three years was blamed on the snow (which somehow subtracted $100 billion in US economic growth for Q1 from early estimates of over 2.5% Q1 GDP estimates), we are not sure if one can also accuse snow for what the Mexican central bank just announced, when in a seemingly shocking announcement, it reported that it cut rates from 3.50% to 3.00%, a move expected by precisely zero economists out of the 20 polled by Bloomberg.

  • BANXICO SAYS DOMESTIC SPENDING, PRIVATE INVESTMENT WEAK
  • BANXICO DOESN’T SEE PRESSURE ON INFLATION FROM AGGREGATE DEMAND
  • BANXICO SAYS POOR PERFORMANCE SUGGESTS MODERATE 2Q RECOVERY

And the punchline:

  • BANXICO SAYS MEXICO’S 1Q ECONOMIC DYNAMISM WORSE THAN EXPECTED

Yup, sure sounds like a whole lot of snow.

In the meantime, all those carry traders long the MXN just got carted out feef first.

Full Banxico statement link here.

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Seasmoke's picture

Race to the bottom is in the home stretch. And down the stretch they Come. 

SilverIsKing's picture

It's been a long race but watch the US make a late move.  It's the strongest closer in the Monetary and Economic Collapse Stakes.

machineh's picture

KNIRP: Know Nothing Interest Rate Policy.

Coming soon to a village idiot near you.

RevRex's picture

Global WARMING makes it snow in the summertime......

 

 And remember, "both parties are the same", that's why only one party is trying to ram a new Global Warming tax up our asses, and why the media only blames republican Presidents for whatever "happens on their watch"

 

 

Right LiberTARDian voters?

max2205's picture

Mexico. ..home of population smartining.....send as many retarded citizens to the US until the remaining are smart blonde and working.    Sounds familiar

CheapBastard's picture

Mexico's #1 export is Mexicans to the USA.

But we're lucky to have them since very very few merikans are willing work in 105 degree weather roofing and road building. Pedro tells me Mexicans wire back to the families over $30 Billion a year [corect me if that's wrong]. That's a main reason Western Union stays afloat.

 

Dios mio!

MillionDollarBonus_'s picture

Hopefully these low rates will be passed on to the man on the street in mortgages and consumer loans. In any case, this should make capital cheaper which will allow the government and big businesses grow support the economy.

RevRex's picture

You need to take Obama's penis out of your mouth so your brain can  concentrate on thinking, instead of concentrating on swallowing Obama's jism.

Haus-Targaryen's picture

Perhaps Mexico needs to beging to subsidize their Green industry?

Tabarnaque's picture

Economic dynamism worse than expected”. Is this the result of legalizing marijuana in the States?! Just joking! I could not resist…

machineh's picture

Wake and bake, comrade.

Them little buds is thirsty.

aardwolf's picture

CALLING ALL ZEROHEDGE READERS:

DO YOU WANT TO END THE FED? DO YOU WANT TO TAKE BACK THE POWER TO CREATE MONEY FROM PRIVATE BANKERS??

 

SWITZERLAND WILL HAVE A REFERENDUM THIS YEAR TO DO JUST THIS!! THEY WILL START ISSUING SWISS FRANCS DEBT FREE LIKE YOUR OLD GREENBACK!!! THEY WILL REMOVE THE PRIVATE BANKS POWER TO CREATE ELECTRONIC DEPOSITS AS DEBT AND RESTORE IT TO THE SWISS NATIONAL BANK, WHICH WILL DO IT DEBT FREE!!

 

PLEASE DONATE HERE THIS SUMMER: http://www.vollgeld-initiative.ch/english/ THEY NEARLY HAVE ALL THE FUNDING FOR THE 100,000 SIGNATURES REQUIRED.

 

DO YOU REALLY WANT THE MADNESS TO END? PUT YOUR MONEY WHERE YOUR MOUTH IS! I HAVE DONATED 10 CHF MYSELF BUT YOU GUYS ARE RICH. PLEASE HELP THE WORLD TODAY! IF THE SWISS SUCCEED WE'LL BE ONE STEP CLOSER TO ENDING THE FED. ACT NOW!!

j0nx's picture

How do they even have an economy? Half of their people are here or on their way here thanks to the government and an apathetic people. Full fledged government sanctioned invasion is the only term that comes to mind.

praps's picture

What do you expect when Mexico's trading neighbour is also in a depression?

Dr. Venkman's picture

"You boys like Banxicooooooo?!"

SheepDog-One's picture

You mean do I like them right meow?

Dr. Venkman's picture

BANXICO: QUIEN QUIERE UN VIEJE DE BIGOTE?

 

meow.

PlusTic's picture

no worries, just sell volatility...there's no such thing as RISK any more

Colonel Klink's picture

It apparently was pooring (sic) children, they flooded into the US, and it stifled their growth.

buzzsaw99's picture

DYNAMISM?

<-- wow, just wow

SheepDog-One's picture

U.S. American stawks say 'YAY!'

Soon Goldman will need to adjust year-end S&P target with hourly Tweeters.

Yen Cross's picture

     Those 1000 pip assrapings have got to hurt! There's going to be a lot of "Preparation-H" sold this weekend.

machineh's picture

Yeah, my Hillaroids are acting up.

youngman's picture

Its probably because  they just lost one million people crossing the border into the USA...on the other hand..they had no jobs...no schooling...so they probably were a drag on the Mexican economy just like they will be on the USA economy..habla Espanol

Magnum's picture

They can cut rates but there has to be someone motivated to take a loan, and there aren't.  FAIL.

youngman's picture

same as in the USA and Europe..no one wants any more debt...that is just a fact after the great recession....but the politicians cant figure that out...

JailBank's picture

All the legal weed in the US is hurting liquidity in Mexico.

The_Ungrateful_Yid's picture

Tons of snow in mexico just not the cold kind.

BrosephStiglitz's picture

So uh, that's what?  Mexico Q1 down.  US Q1 down.  China's Q1 looks meager at best and is facing potential credit market implosion.  Russia is raising interest rates and shutting banks.  Europe is slipping into deflation and NIRP.  Japan is trashing the Yen to try and boost growth.

Bullish Macro fundamentals.  Last bear leg in precious metals.  Final hockey-stick moment on stocks incoming.  Then the momentum reverses.

I do not expect this charade to continue too much longer.  Four quarters at most before even the most retarded economists, pension fund managers and Jim Cramer watching, white-collar working man get it into their head that the economy is slipping off a cliff.

Haus-Targaryen's picture

So that means more StIMulUS, and thus bullish. 

DOW - 30,000

SDShack's picture

Q1 2015, it will be obvious to everyone. The worst vestiges of 0zer0care are making their way through the system, starting now. Employers are starting to get notices from carries what their cost increases are going to be. That will cause employers to adjust their 2015 budgets. That leads to notification packets going to all employees by October during the Open Enrollment period. Employees find out they have double digit increases in premiums, or worse, their employer had eliminated HC and the employees have to go to the 0zer0care exchange. Q4 Holiday Sales tank. 2015 Q1 comes along and sticker shock becomes wallet shock, and the new normal. The Great Recession 2.0.... but really a continuation of the Depression 2.0 that started in 2000.

JR's picture

Fly Away: Illegal aliens taking U.S. jobs sent tens of billions out of the country, draining the U.S. economy…taking money under the table, displacing Americans from their livelihoods, voting as undocumented Democrats for more one-way socialism…supported by the Republican Establishment… 

Illegal Aliens Sent $21.6 Billion in Cash Back to Mexico in 2013

By Top Right News on February 7, 2014

Advocates for immigration amnesty keep telling us that illegal aliens contribute massively to the economy.

That’s true — for the MEXICAN economy.

The fact is that the overwhelming amount of the wages earned by illegal aliens is not spent in this country, but simply sent back home’

Mexico received $21.59 billion in remittances from emigrants in 2013, the Bank of Mexico said. Nearly 74 million transactions were registered in 2013, with the average remittance totaling $292, the central bank said. Remittances rose 3.5 percent to $5.34 billion in the fourth quarter of last year, compared to the same period in 2012, with 18.4 million transactions and an average amount of $285.30, the Bank of Mexico said.

Figures for the total amount illegal aliens sent back to their home countries is not easily available, but according to the Inter-American Development Bank, all of Latin America received a staggering $69.2 billion in remittances from the U.S. in 2009 alone…

The recent figures are further evidence, that as U.S. workers are being left out of the job market in increasing numbers, illegal aliens are taking the place of their American counterparts.

The Pew Hispanic Center study released in late 2010, which found that while every demographic of native-born workers had lost millions of jobs during this deep recession, foreign-born workers have actually increased their employment numbers. Between June 2009 and June 2010, immigrants (including illegal aliens) have gained 656,000 jobs, while U.S. born workers lost 1.2 million jobs during that same period.

The Pew study found that 57 percent of those that they refer to as “immigrant” workers, were actually non-citizens.

Remittances, such as Western Union Moneygrams from the United States represent the second largest source of income for Mexico. In 2009, Mexican workers, mostly illegal aliens, sent home $21.2 billion in such transfers.

The transfers are second only to Mexico’s oil industry in the amount of revenue produced, which is one of the chief reasons the Mexican government has no interest in working with U.S. authorities to police our common border.

http://toprightnews.com/?p=1312

Oldrepublic's picture

it is not only in Mexico but it is  worldwide. Lots of migrants are sending money home, for example 68 Billion a year to India, 57 billion to China, 23 billion to the Philippines.

The following link shows worldwide remittance flows from a Swiss website:

http://www.tageswoche.ch/de/2013_19/international/540047/the-incredible-...

sandhillexit's picture

Draghi is running into head winds.  You have to weaken against someone else.  Mexico saying, "well not us." That said, I am sure US Treasury is relieved that EU is accumulating Dollars. Helps smooth the rough patch vs Russia.  

Uncle Remus's picture

Snowden in Mexico?

MFL8240's picture

When the Mexican Goverment has more credibility than the US goverment, which is clearly the case now, you have trouble ahead but, higher and higher goes the equity bubble!